There seems to be some good news coming from Washington…..first of all, it is NOT that the people are happy with their Reps…..
When asked how they felt about the federal government, 80 percent of poll respondents said that they felt dissatisfied or even angry about the work the government is doing. The last time such a peak of ill will was felt was during 1992′s economic slump, under President George Bush’s leadership.
This is something that could impact the 2012 election…watch and learn…..
The happy is coming from the negotiations of the “Gang of 6″….they 3 Repubs and 3 Dems, that have come up with a plan that the Prez seems to like and the media seems to like and the Reps are torn…..but there are other views of this plan and I have read one that I will agree with after hearing all the proposals within the Gang of 6 deal…..
This was written by jcase for a Google discussion board……..
The plan is said to be “balanced,” meaning there will be big cuts in
spending plus some revenue increases from closed loopholes and
abandoned deductions like mortgage interest. That’s alongside, of
course, an agreement to raise the debt ceiling and not revisit it until
after the 2012 elections.But the deal is also a big step in the direction of Austerity Economics
- the lunacy of fighting recessions with more layoffs.
Cuts in basic entitlements – Social Security, Medicare, Medicaid – will
not drive more customers into the empty parking lots in stores across
America, nor fill up the order books of manufacturers. Those empty
parking lots and order books are the number one and two reasons why
economic recovery is sputtering.
The framework that says debt is more important than jobs is
fundamentally backwards. The president’s deficit reduction plans – and
those of the “Gang of Six” – rest on a series of predictions and
assumptions about employment, none of which has proved accurate. And
based on the past quarter’s private sector hiring of only 18,000
workers (far less than the swell of the workforce), these predictions
and assumptions will be flat out wrong for the future. The lesson: if
employment does not increase no deficit reduction plan will work.
I have said from the beginning of all this …..that cuts will NOT do it alone; it must be coupled with revenue and jobs creation…..without those 3 there is NO debt reduction….unless that is what is intended….and in this political climate I would not put it past some of the amateurs in Congress to work for a default……basically we have turned away from fighting for prosperity to embracing austerity ONLY! The concept of prosperity is NO longer relevant….that only austerity will make the economy strong again…….a pile of steaming bovine fecal matter (to use a fav analogy)……..
The economy looks like a piece of crap! Workers are losing jobs at an alarming rate. And yet every time stocks go up 2 points we are told by the financial media that the recession is showing signs of improvement….and for a couple of years I have been saying that it is just NOT so…….and that a double dip is coming, at least in my analysis…..
Thanx to Michael Snyder of BLN.com for doing the research for me (Not solely for me but I thank him)…….there are signs that say that the worse is yet to come…….
The following are 18 signs that global financial markets smell blood in the water….
#1 Banks stocks are absolutely getting hammered right now. Bank of America hit a 52 week low on Monday. Bank of America shares declined 4 percent to $9.61.
#2 So far this year, Bank of America stock is down about 27 percent.
#3 Bloomberg is reporting that Bank of America may be forced to increase its capital cushion by 50 billion dollars.
#4 Shares of Goldman Sachs and Morgan Stanley are near two year lows.
#5 Shares in Citigroup fell 2.5 percent on Monday.
#6 Moody’s recently warned that it may be forced to downgrade the debt ratings of Bank of America, Citigroup and Wells Fargo.
#7 Barclays Capital, Goldman Sachs, Bank of America, JPMorgan Chase and Morgan Stanley are all either considering staff cuts or are already laying workers off.
#8 The deputy European director of the International Monetary Fund says that the Greek debt crisis is “on a knife’s edge“.
#9 Moody’s has slashed Ireland’s bond rating all the way to junk status.
#10 The yield on 2 year Portuguese bonds is now over 20 percent, the yield on 2 year Irish bonds is now over 23 percent and the yield on 2 year Greek bonds is now over 35 percent.
#11 Shares of Italy’s largest bank dropped by a whopping 6.4% on Monday.
#12 On Monday, the yield on 10 year Italian bonds was the highest it has been since the euro was adopted.
#13 On Monday, the yield on 10 year Spanish bonds was also the highest it has been since the euro was adopted.
#14 Shares of Germany’s largest bank fell by a staggering 7% on Monday and are down a total of 22% so far this month.
#15 Citigroup’s chief economist, William Buiter, says that without direct intervention by the ECB there is going to be a wave of sovereign defaultsacross Europe….
“Nothing stands in the way of multiple sovereign defaults except the ECB: they are the only game in town, there is nothing else”
#16 Cisco has announced plans to axe 16 percent of its workers.
#17 Borders Group has announced that it will be liquidating all remaining assets. That means that 399 stores will be closed and 10,700 workers will lose their jobs.
#18 During times of great crisis, many investors seek safe havens for their money. On Monday, the price of gold shot past $1600 an ounce.
The indicators are staring us in the face……will anyone blink first…….who will be on the hook this time? None of the indicators are as good as the media wants you to believe they are……the world is about to get a cold slap in the face…they know it! Now you know it!